What This Measures
SME contribution to GDP measures the share of total gross domestic product generated by small and medium enterprises — typically defined as firms with fewer than 250 employees. In diversified economies, SMEs account for 40 to 60 percent of GDP and the majority of private sector employment. The indicator captures the depth of entrepreneurial activity and the extent to which economic output is distributed across a broad base of enterprises rather than concentrated in large state-owned or multinational firms.
For Qatar, where the economy is dominated by QatarEnergy, major banks, and government-linked enterprises, SME contribution is a structural indicator of diversification depth.
Baseline
Approximately 12 percent (2010 estimate) — At the baseline, SME contribution was constrained by the dominance of large enterprises and the structural economics of a small, resource-rich market.
Current Value
Approximately 16 to 18 percent (2024 estimate) — Growth has been supported by Qatar Development Bank financing, the Al Dhameen partial credit guarantee scheme, free zone access for small enterprises, and the emergence of a modest startup ecosystem around Qatar Science and Technology Park.
2030 Target
25 percent — Implied by NDS economic diversification targets and benchmarked against leading regional peers such as the UAE, where SME contribution exceeds 30 percent.
Status Assessment
At Risk — Growth from 12 percent to 17 percent over fourteen years represents slow progress relative to the 25 percent target. The gap is approximately 8 percentage points, and the rate of improvement (less than 0.5 percentage points per year) is insufficient to close it by 2030 without a structural acceleration.
Key Drivers
Qatar Development Bank lending and advisory services. Al Dhameen credit guarantee programme reducing lending risk. Qatar Free Zones Authority providing accessible business formation. QSTP incubator and accelerator programmes. Government procurement set-asides for SME suppliers. Growing domestic consumer market from population expansion.
What Needs to Happen
Reaching 25 percent requires structural changes to the business environment beyond additional support programmes. Government procurement must be systematically opened to SME suppliers with simplified tendering processes. Competition policy must prevent market concentration that excludes small entrants. Access to commercial real estate at affordable rates must improve. The financial sector must develop SME-appropriate lending products beyond government-guaranteed schemes. Critically, the overall ease of doing business — licensing, permitting, dispute resolution, and regulatory compliance costs — must be simplified to reduce the friction that disproportionately affects smaller enterprises.